|
ITAC
WARNING: Beware of Fake Import and Export Permits
The International Trade Administration Commission of South
Africa (ITAC) is responsible for customs tariff investigations; trade
remedies; and import and export control in South Africa.
ITAC has published a warning poster under the section titled “Latest
Notices” on the ITAC website, www.itac.org.za.
It is presumed that the warning is aimed at importers and
exporters as it reads:
·
Beware of fake import and export
permits.
·
ITAC does not have satellite offices. No
appointed agents of representatives.
·
All ITAC permits are issued free of
charge.
·
Get your permit today.
The impact of South
Africa’s Trade Policy since 1995 on the SACU Customs Tariff
The changes to South Africa’s trade policy since 1925 has been
discussed briefly in last week’s Bulletin article.
Drastic changes to the SACU Tariff were introduced with effect
from 1 January 1995, when the WTO Agreement (the successor of the
General Agreement on Tariffs and Trade to which South Africa was a
founding member in 1947) entered into force. In terms of the GATT 1994
Agreement, which established the WTO 1995, the import duty rates on
most products have been reduced over a five year period with effect
from 1 January 1995. In other words, the rates of duty on most products
were phased to the WTO Bound rates in terms of the WTO Uruguay Round by
1 January 2000.
There were certain exceptions to the reductions, such as the import
duties on clothing and textile, paper, and products of the motor
vehicle industry which were phased down over longer periods.
The General Export Incentive Scheme (GEIS) which was
introduced in 1990 was not WTO-compliant and was abolished.
The SACU Tariff, which at a time was the second most complex tariff
in the world, was first simplified in 1990 following an investigation
and report by the Industrial Development Corporation in South Africa. It
was simplified further when the WTO 1995 entered into force in South
Africa through the rationalization of the tariff regime that existed at
that time by reducing the number of tariff lines from more than 12 000
to around 7 800. These figures were supplied by the International Trade
Administration Commission (ITAC) in a report entitled Customs Tariff
Policy June 2004.
The number of tariff bounds has also been reduced from more
than 100 to only 6 (0%, 5%, 15%, 20% and 30%).
The average weighted import duties which existed at that time
were reduced from 34% to 17% for consumer goods, from 8% to 4% for
intermediate goods, and from 11% to 5% for capital goods.
In terms of the WTO 1995 Agreement, there were also drastic
changes to the Import and Export Control Act, 1963 of South Africa (which
was repealed by the International Trade Administration Act 71 of 2002),
and the import control on agricultural products were abolished and
replaced by higher rates of duty on agricultural products, which was
still in line with WTO commitments.
The rates of duty that existed on agricultural products at that
time were also reduced gradually.
The rates of duty on many goods have been reduced to free, and
many on the rebates, refund and drawback provisions have been abolished
because they have become redundant. However SACU are now increasingly
making use of anti-dumping duties, countervailing duties and safeguard duties.
|
|
|
The
International Trade Administration Commission (ITAC) is responsible for tariff
investigations, amendments, and trade remedies in South Africa and on
behalf of SACU.
Tariff
investigations include: Increases in the customs duty rates in
Schedule No. 1 Part 1 of Jacobsens.
These applications apply to all the SACU Countries, and, if amended,
thus have the potential to affect the import duty rates in Botswana,
Lesotho, Namibia, Swaziland and South Africa.
Reductions
in the customs duty rates in Schedule No. 1 Part 1. These applications
apply to all the SACU Countries, and, if amended, thus have the
potential to affect the import duty rates in Botswana, Lesotho,
Namibia, Swaziland and South Africa.
Rebates of
duty on products, available in the Southern African Customs Union
(SACU), for use in the manufacture of goods, as published in Schedule
No. 3 Part 1, and in Schedule No. 4 of Jacobsens.
Schedule No. 3 Part 1 and Schedule No. 4, are identical in all the SACU
Countries.
Rebates of
duty on inputs used in the manufacture of goods for export, as
published in Schedule No. 3 Part 2 and in item 470.00. These provisions
apply to all the SACU Countries.
Refunds of
duties and drawbacks of duties as provided for in Schedule No. 5. These
provisions are identical in the all the SACU Countries.
Trade
remedies include: Anti-dumping duties (in Schedule No. 2 Part 1 of Jacobsens), countervailing duties to counteract
subsidisation in foreign countries (in Schedule No. 2 Part 2), and
safeguard duties (Schedule No. 2 Part 3), which are imposed as measures
when a surge of imports is threatening to overwhelm a domestic
producer, in accordance with domestic law and regulations and
consistent with WTO rules.
Dumping is defined as a
situation where imported goods are being sold at prices lower than in
the country of origin, and also causing financial injury to domestic
producers of such goods. In other words, there should be a demonstrated
causal link between the dumping and the injury experienced.
|
To remedy such unfair pricing, ITAC may, at times, recommend the
imposition of substantial duties on imports or duties that are
equivalent to the dumping margin (or to the margin of injury, if this
margin is lower).
Countervailing
investigations are conducted
to determine whether to impose countervailing duties to protect a
domestic industry against the unfair trade practice of proven subsidised
imports from foreign competitors that cause material injury to a
domestic producer.
Safeguard
measures, can be introduced to protect a
domestic industry against unforeseen and overwhelming foreign
competition and not necessarily against unfair trade, like the previous
two instruments.
In the WTO system, a member may take a safeguard action, which
is, restricting imports temporarily in the face of a sustained increase
in imports that is causing serious injury to the domestic producer of
like products. Safeguard measures are universally applied to all
countries, unlike anti-dumping and countervailing duties that are aimed
at a specific firm or country.
Schedule No. 2 is identical in all the SACU Countries.
The International Trade Administration Commission (ITAC)
published a notice regarding several applications concerning amendments
to the Customs Tariff for South Africa and Botswana, Lesotho, Namibia
and Swaziland on 19 December 2014. The Notice was published in Government
Gazette 38319
Comments are due by
23 January 2015.
The first application relates to an increase in the general
rate of customs duty on zinc-coated/galvanized steel, aluminium-zinc coated steel and paint-coated steel,
classifiable under tariff subheadings 7210.41, 7210.49, 7212.30,
7210.61, 7210.90, 7225.99, 7210.70 and 7212.40 from free of duty to 10%
ad valorem. (ITAC Reference 05/2014. Enquiries: Ms Ramphabana and/or Mr N. Mahlalela.
Telephone: (012) 394 3627, (012) 394 3684. E-mail: nramphabana@itac.org.za and/or nmahlalela@itac.org.za.
The second application relates to the reduction in the general
rate of customs duty on primary cells/batteries, cylindrical (excluding
those of a height not exceeding 7 mm), of a diameter exceeding
19 mm, classifiable under tariff subheading 8506.50.25, from 10%
ad valorem to free. (ITAC Reference 07/2014. Enquiries and
correspondence to be directed to Ms M Moloto. Telephone:
(012) 394 3676. Fax: (012) 394 4676. Email: mmoloto@itac.org.za. Download
the notice (Government Notice No. R. 1155 of 2014) http://www.gov.za/sites/www.gov.za/files/38319_gen1155.pdf
|
|
|
With the
exception of certain parts of Schedule No. 1, such as Schedule No. 1
Part 2 (excise duties), Schedule No. 1 Part 3 (environmental levies)
Schedule No. 1 Part 5 (fuel and road accident fund levies), the other
parts of the tariff is amended by SARS based on recommendations made by
ITAC resulting from the investigations relating to Customs Tariff
Applications received by them. The ITAC then investigates and makes
recommendations to the Minister of Trade and Industry, who requests the
Minister of Finance to amend the Tariff in line with the ITAC’s
recommendations. SARS is responsible for drafting the notices to amend
the tariff, as well as for arranging for the publication of the notices
in Government Gazettes.
|
During the
annual budget speech by the Minister of Finance in February, it was
determined that parts of the tariff that are not amended resulting from
ITAC recommendations, must be amended through proposals that are tabled
by the Minister of Finance.
Once a
year big tariff amendments are published by SARS, which is in line with
the commitments of South Africa and SACU under international trade
agreements. Under these amendments, which are either published in
November or early in December, the import duties on goods are reduced
under South Africa’s international trade commitments under existing
trade agreements.
There were no tariff amendments since the amendments that were
released on 22 December 2014.
Download the
latest Customs Watch to have access to the latest tariff amendments.
|
|
|
The
Customs and Excise Act is amended by the Minister of Finance. Certain
provisions of the Act are supported by Customs and Excise Rules, which
are prescribed by the Commission of SARS. These provisions are numbered
in accordance with the sections of the Act. The rules are more
user-friendly than the Act, and help to define provisions which would
otherwise be unclear and difficult to interpret.
Forms are also prescribed by rule, and are published in the
Schedule to the Rules.
|
Forms are
also prescribed by rule, and are published in the Schedule to the Rules.
There were no
rule amendments at time of publication. The last amendment (DAR/140)
was published on 8 August 2014. Government Notice No. R.600 was
published in the Government Gazette 37890 of 8 August 2014.
Download the latest Customs Watch to
have access to the latest tariff and rule amendments.
|
|
